Why is it worth installing a mobile banking app? Is it safe?

The technological progress we have observed in recent years in the banking sector is impressive. According to the Digital Banking Maturity 2022 report, prepared by Deloitte, as many as 6 Polish banks are among the digital leaders setting the direction for the digitisation of the entire sector. According to the authors of the report, it is precisely the spread of remote banking services, as well as the entry into force of legal acts such as the PSD2 directive, that have had the greatest impact on the development of the banking sector in the field of mobile services. There is no denying that a bank in a phone is a very convenient and practical solution. The only question is, is it really safe?

Mobile banking app – what is it and how does it work?

A mobile banking app is special software for a smartphone or tablet that allows you to carry out various types of financial operations on the user’s bank account. Thanks to it, we can perform practically all activities available from the computer at any time, including primarily:

• check the current account balance and account history;
• make a transfer, pay bills;
• pay for purchases in an online store;
• order a standing transfer order to open a deposit or savings account;
• exchange currency; apply for a loan or credit;
• block a lost or stolen payment card.

A big advantage of banking applications is their availability and ease of use. All you need to do is download them from a dedicated online application store (AppStore or Google Play), and then install them on a mobile device. During the installation process, the user is guided by simple and clear instructions directly from the Bank.

Are mobile banking apps safe?

According to data collected by PRNews.pl, at the end of 2021, over 19.6 million bank customers in Poland were using mobile banking. Most of them used apps installed on their smartphones for this purpose. This form of account management is becoming increasingly popular among customers. Unfortunately, despite the increase in installed applications, there are still concerns among electronic banking customers about the security of data used for logging in or authorising transactions. Are they justified?

As we know, cybercriminals are constantly looking for new methods to obtain data (and consequently money) from consumers unaware of the danger. However, let’s remember that, like all applications storing sensitive user data, banking applications must be additionally protected against hacker attacks. Therefore, banks use various solutions in them to prevent fraud and abuse. Thanks to them, they can enable additional mechanisms, such as regular software updates, two-level authentication for a bank account, automatic logout from the account after a certain period of inactivity, or the inability to store sensitive data in the application’s cache memory.

Despite such high protection, we must be aware that using banking applications is associated with a minimal risk of losing financial resources. However, this is most often not related to the bank’s security measures, but rather to the customer’s carelessness when using the application. In what situations are we exposed to cybercriminal attacks? Here are a few examples:

• We use an open public network that does not have additional security and is accessible to internet criminals. It is enough then to log into such a network, and then into the banking application, for hackers to easily obtain our data, and then withdraw money from the account;
• We forget about regularly updating the software, which makes it easier for cybercriminals to take over the data to log into the account;
• We install the banking application from a suspicious source, where it may be infected with a virus, and thus threaten the security of our data;
• We use too weak security (simple passwords, PINs like “1234”);
• We become victims of a social engineering attack, e.g. phishing

Threats resulting from using mobile banking – how to protect yourself against them?

Good news for users of mobile banking applications (as well as all other applications operating our sensitive data) is that there are many effective methods to defend against threats related to online banking. All we need to do is remember the following rules:

• Download banking applications only from a verified source, i.e. the official application store for a given operating system (Android or iOS);
• Do not install suspicious applications, even if they come from the official application store;
• Regularly update the software on the phone – this applies not only to applications, but also to the operating system itself. Remember that an updated system is a guarantee of better security for all mobile applications;
• Use antivirus software that will protect our device against various threats;
  Take care of effective protection of the mobile device – this is not only about self-protection with a PIN or an appropriate password. We can use technology and enable login using verification: fingerprint or face scan;
• Enable behavioural verification – if our bank allows it, of course free of charge, then let’s use behavioural verification security. It is based on the analysis of the way of using a computer or smartphone, based on the individual characteristics and behaviours of the owner;
• Do not use public Wi-Fi networks when using a mobile banking application;
• Set limits for mobile transactions;
• Beware of suspicious SMS messages and emails from senders impersonating banking institutions;
• Add our device to the list of trusted devices – this will make it difficult for a potential criminal to attack from a computer/smartphone other than the defined one.

So is it worth using mobile banking applications?

Definitely yes, but provided that we will skillfully implement top-down security rules, and also use appropriate software recommended by banking institutions. Let’s also remember that in the era of progressing digitisation, banking applications are today not only a convenience for the customer, but also an important step towards the development of the Polish banking sector and the implementation of increasingly advanced technological solutions.